SCHEDULE 14A
(RULE 14A-101)
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934
Filed by the Registrant (X)
Filed by a Party other than the Registrant ( )
Check the appropriate box:
( ) Preliminary Proxy Statement
( ) CONFIDENTIAL, FOR USE OF THE COMMISSION ONLY (AS PERMITTED BY RULE
14A-6(E)(2))
( ) Definitive Proxy Statement
( ) Definitive Additional Materials
(X ) Soliciting Material Pursuant to Rule 14a-12
FILING BY:
US AIRWAYS GROUP, INC
-------------------------------------------------------------
(Name of Registrant as Specified In Its Charter)
----------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than Registrant)
Payment of Filing Fee (Check the appropriate box):
( X ) No fee required
( ) Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
(1) Title of each class of securities to which transaction applies:
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(2) Aggregate number of securities to which transaction applies:
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(3) Per unit price or other underlying value of transaction
computed pursuant to Exchange Act Rule 0-11 (set forth the
amount on which the filing fee is calculated and state how it
was determined):
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(4) Proposed maximum aggregate value of transaction:
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(5) Total fee paid:
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( ) Fee paid previously with preliminary materials.
( ) Check box if any part of the fee is offset as provided by
Exchange Act Rule 0-11(a)(2) and identify the filing for which
the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the form or
schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON
JULY 28, 2000
NEWS RELEASE
2345 Crystal Drive
Arlington, VA 22227
[LOGO OF US AIRWAYS] Contact:
(703) 872-5100
-------------------------------------------------------------------------------
US AIRWAYS TO BUILD CHARLOTTE HANGAR
FOR OVERNIGHT MAINTENANCE
ARLINGTON, Va., July 19 - US Airways' Board of Directors gave
approval today for construction of a new $10 million hangar in Charlotte to
accommodate overnight maintenance of aircraft.
The 46,000-square foot facility will be constructed next to existing
hangar facilities, which are used for longer-term "heavy" maintenance.
Construction is expected to be completed in early 2001.
"The Charlotte airport has emerged as a world-class facility that
serves both passenger and maintenance needs well. With this addition of a
new overnight maintenance facility, it will be even better positioned to
become the leading airport in the Southeast," said US Airways Chairman
Stephen M. Wolf.
United Airlines Chairman and CEO Jim Goodwin said: "United is
committed to increasing service at the Charlotte hub and to developing it
as a competitive alternative to Atlanta once the merger transaction with US
Airways is completed. This additional line maintenance hangar will be a
welcomed addition at Charlotte."
Gov. Jim Hunt of North Carolina said, "I'm delighted US Airways is
expanding in Charlotte. Our state was First In Flight and this announcement
means North Carolina is continuing to build on its long legacy in the field
of aviation. We are grateful for US Airways' commitment to North Carolina,
we are excited about these plans and want to do all we can to make it a
success."
With more than 495 jet and US Airways Express flights daily serving
more than 100 destinations nonstop, Charlotte is well positioned as a major
domestic and international hub. US Airways enplaned nearly 10 million
passengers at Charlotte in 1999 and has more than 8,500 employees in the
Charlotte area.
US Airways, the US Airways Express carriers, US Airways Shuttle,
and low-fare MetroJet fly to 205 destinations worldwide, including 38
states in the U.S., Bermuda, Cancun, Grand Cayman, Montego Bay, Nassau, San
Juan, St. Thomas, St. Maarten, St. Croix, and the Canadian destinations of
Toronto, Montreal, Ottawa, Hamilton, and London, Ontario. US Airways'
transatlantic destinations include Frankfurt, London, Madrid, Munich, Paris
and Rome.
PARTICIPANT INFORMATION
In connection with the merger of US Airways with a wholly-owned subsidiary
of UAL Corporation, US Airways filed a preliminary proxy statement on
Schedule 14A with the United States Securities and Exchange Commission (the
"SEC") on July 6, 2000. STOCKHOLDERS OF US AIRWAYS ARE URGED TO READ THE
DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION. Information concerning participants in the
solicitation of proxies by US Airways from stockholders to approve the
merger as well as information on how you can get the definitive proxy
statement for free, when it becomes available, and other relevant
documents, on the SEC web site is contained in the Schedule 14A filed by US
Airways with the SEC pursuant to Rule 14a-12 of the Securities Exchange Act
of 1934, as amended, on May 25, 2000.
US AIRWAYS GROUP 2nd QUARTER NET INCOME IS $80 MILLION
ARLINGTON, Va., July 19, 2000 - US Airways Group, Inc., reported net
income for the second quarter today of $80 million on revenues of $2.4
billion. Operating income for the quarter was $168 million. Diluted
earnings per common share were $1.17.
"While there was a significant impact on earnings from the high cost
of fuel, US Airways has benefited from the improved business climate
affecting the entire industry," said US Airways President and CEO Rakesh
Gangwal.
Gangwal noted that there were a number of major developments during
the quarter, including the approval of a new flight attendant contract,
continued gains internationally and the rapid development of US Airways'
new Airbus fleet, with the addition of A330-300 transatlantic aircraft as
well as new single-aisle A319s and A320s.
"Despite the competitive pressures from low-cost carriers and the
challenge of an unusual number of summer storms and associated air traffic
control delays, US Airways' employees are to be congratulated for remaining
focused on providing the highest levels of service," Gangwal said.
US Airways Chairman Stephen M. Wolf said, "Going forward, we are
focused on bringing to fruition the merger between US Airways and United
Airlines, a development that will bring great benefit to the traveling
public as well as the employees and shareholders of US Airways."
US Airways Group's operating income of $168 million was down by 39.8
percent from the $279 million reported in the second quarter of 1999. This
was the result primarily of sharply increased fuel costs and the negative
impact on passenger volume and yields from threatened labor action at the
end of the first quarter that continued to have an impact in the second.
Total operating expenses for the quarter were $2.3 billion, an increase of
12.9 percent over the second quarter of 1999.
Pre-tax income for the quarter was $135 million, 74.6 percent below
the comparable 1999 figure of $532 million, which included a gain of $274
million relating to the company's sale of its interest in Galileo
International, Inc. and expense credits totaling $16 million resulting from
asset dispositions. Net income of $80 million was 74.8 percent below the
second quarter 1999 net income figure of $317 million.
On a per-share basis, the $1.17 figure for second quarter 2000
compares to $4.26 for second quarter 1999, including the nonrecurring items
and $1.83 excluding nonrecurring items.
For the second quarter of 2000, US Airways' revenue passenger miles
increased by 11.4 percent with a 9.6 percent increase in available seat
miles. The number of passengers increased by 5.4 percent, the length of the
average passenger journey by 5.7 percent and the passenger load factor by
1.2 percentage points to 74.7 percent. Revenue per available seat mile was
13.33 cents, down 2.7 percent while cost per available seat mile was 12.62
cents, an increase of 2.0 percent, driven largely by increased fuel costs.
Cost of aviation fuel per gallon for the quarter was 85.29 cents, an
increase of 62.8 percent over the previous year.
For the first six months of 2000, the net loss was $138 million as
compared to net income, including one-time gains, of $363 million for the
first half of 1999. Operating revenues for the period were $4.5 billion, an
increase of 4.0 percent, while operating expenses were $4.5 billion, an
increase of 12.8 percent. Operating income for the six-month period was $29
million as compared to $368 million in 1999, again largely reflecting
increased fuel costs. Loss per common share for the period was $2.07 as
compared to diluted earnings per share of $4.67, including one-time
factors, in the first half of 1999.
Revenue passenger miles for the six-month period increased 6.6 percent
with an increase in available seat miles of 8.1 percent. The number of
passengers carried increased 2.2 percent and the length of the average
passenger journey by 4.5 percent, while the passenger load factor for the
period declined by 1.0 percentage points to 69.7 percent. Revenue per
available seat mile was 12.88 cents, down by 4.0 percent, while cost per
available seat mile was 12.99 cents, an increase of 3.5 percent. Cost of
aviation fuel per gallon was 86.98 cents, an increase of 81.5 percent over
1999.
Participant Information
In connection with the merger of US Airways with a wholly-owned
subsidiary of UAL Corporation, US Airways filed a preliminary proxy
statement on Schedule 14A with the United States Securities and Exchange
Commission (the "SEC") on July 6, 2000. STOCKHOLDERS OF US AIRWAYS ARE
URGED TO READ THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE
BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. Information concerning
participants in the solicitation of proxies by US Airways from stockholders
to approve the merger as well as information on how you can get the
definitive proxy statement for free, when it becomes available, and other
relevant documents, on the SEC web site is contained in the Schedule 14A
filed by US Airways with the SEC pursuant to Rule 14a-12 of the Securities
Exchange Act of 1934, as amended, on May 25, 2000.
NUMBER: 3930
US Airways Group, Inc. NEWS RELEASE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Three Months Ended June 30,
-----------------------------------
2000 1999 % Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 2,212 $ 2,063 7.2
Cargo and freight 39 35 11.4
Other 182 188 (3.2)
--------- ---------
Total Operating Revenues 2,433 2,286 6.4
Operating Expenses
Personnel costs 878 813 8.0
Aviation fuel 284 162 75.3
Commissions 99 130 (23.8)
Aircraft rent 125 105 19.0
Other rent and landing fees 109 106 2.8
Aircraft maintenance 126 120 5.0
Other selling expenses 115 95 21.1
Depreciation and amortization 92 77 19.5
Other 437 399 9.5
--------- ---------
Total Operating Expenses 2,265 2,007 12.9
--------- ---------
Operating Income 168 279 (39.8)
Other Income (Expense)
Interest income 25 14 78.6
Interest expense (65) (47) 38.3
Interest capitalized 8 9 (11.1)
Gain on sale of investment -- 274 (100.0)
Other, net (1) 3 (133.3)
--------- ---------
Other Income (Expense), Net (33) 253 (113.0)
--------- ---------
Income (Loss) Before Taxes and
Cumulative Effect of
Accounting Change 135 532 (74.6)
Provision (Credit) for
Income Taxes 55 215 (74.4)
--------- ---------
Income (Loss) Before Cumulative
Effect of Accounting Change 80 317 (74.8)
Cumulative Effect of Accounting
Change, Net of Applicable
Income Taxes of $63 Million -- -- --
--------- ---------
Net Income (Loss) $ 80 $ 317 (74.8)
========= =========
Earnings (Loss) per Common Share
Basic
Before Accounting Change $ 1.19 $ 4.34 (72.6)
Cumulative Effect of
Accounting Change $ -- $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ 1.19 $ 4.34 (72.6)
========= =========
Diluted
Before Accounting Change $ 1.17 $ 4.26 (72.5)
Cumulative Effect of
Accounting Change $ -- $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ 1.17 $ 4.26 (72.5)
========= =========
Shares Used for Computation (000)
Basic 66,831 72,981
Diluted 68,282 74,457
US Airways Group, Inc. NEWS RELEASE
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in millions, except per share amounts)
Six Months Ended June 30,
-----------------------------------
2000 1999 % Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 4,096 $ 3,919 4.5
Cargo and freight 78 75 4.0
Other 357 364 (1.9)
--------- ---------
Total Operating Revenues 4,531 4,358 4.0
Operating Expenses
Personnel costs 1,754 1,615 8.6
Aviation fuel 557 292 90.8
Commissions 190 254 (25.2)
Aircraft rent 250 219 14.2
Other rent and landing fees 220 214 2.8
Aircraft maintenance 256 238 7.6
Other selling expenses 222 195 13.8
Depreciation and amortization 183 158 15.8
Other 870 805 8.1
--------- ---------
Total Operating Expenses 4,502 3,990 12.8
--------- ---------
Operating Income 29 368 (92.1)
Other Income (Expense)
Interest income 37 29 27.6
Interest expense (122) (97) 25.8
Interest capitalized 17 17 --
Gain on sale of investment -- 274 (100.0)
Other, net -- 17 (100.0)
--------- ---------
Other Income (Expense), Net (68) 240 (128.3)
--------- ---------
Income (Loss) Before Taxes and
Cumulative Effect of Accounting
Change (39) 608 (106.4)
Provision (Credit) for
Income Taxes (4) 245 (101.6)
--------- ---------
Income (Loss) Before Cumulative
Effect of Accounting Change (35) 363 (109.6)
Cumulative Effect of Accounting
Change, Net of Applicable Income
Taxes of $63 million (103) -- --
--------- ---------
Net Income (Loss) $ (138) $ 363 (138.0)
========= =========
Earnings (Loss) per Common Share
Basic
Before Accounting Change $ (0.52) $ 4.76 (110.9)
Cumulative Effect of
Accounting Change $ (1.55) $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (2.07) $ 4.76 (143.5)
========= =========
Diluted
Before Accounting Change $ (0.52) $ 4.67 (111.1)
Cumulative Effect of
Accounting Change $ (1.55) $ -- --
--------- ---------
Net Earnings (Loss) per
Common Share $ (2.07) $ 4.67 (144.3)
========= =========
Shares Used for Computation(000)
Basic 66,665 76,205
Diluted 66,665 77,671
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions)
Three Months Ended June 30,
-----------------------------------
%
2000 1999 Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 1,972 $ 1,838 7.3
US Airways Express
transportation revenues 231 206 12.1
Cargo and freight 38 34 11.8
Other 158 170 (7.1)
--------- ---------
Total Operating Revenues 2,399 2,248 6.7
Operating Expenses
Personnel costs 814 755 7.8
Aviation fuel 264 150 76.0
Commissions 91 118 (22.9)
Aircraft rent 107 90 18.9
Other rent and landing fees 98 97 1.0
Aircraft maintenance 105 95 10.5
Other selling expenses 104 85 22.4
Depreciation and amortization 85 71 19.7
US Airways Express capacity
purchases 185 159 16.4
Other 385 361 6.6
--------- ---------
Total Operating Expenses 2,238 1,981 13.0
--------- ---------
Operating Income 161 267 (39.7)
Other Income (Expense)
Interest income 34 56 (39.3)
Interest expense (66) (47) 40.4
Interest capitalized 5 4 25.0
Gain on sale of investment -- 274 (100.0)
Other, net (2) 4 (150.0)
--------- ---------
Other Income (Expense), Net (29) 291 (110.0)
--------- ---------
Income (Loss) Before Taxes
and Cumulative Effect of
Accounting Change 132 558 (76.3)
Provision (Credit) for
Income Taxes 54 219 (75.3)
--------- ---------
Income (Loss) Before
Cumulative Effect of
Accounting Change 78 339 (77.0)
Cumulative Effect of
Accounting Change, Net
of Applicable Income
Taxes of $63 Million -- -- --
--------- ---------
Net Income (Loss) $ 78 $ 339 (77.0)
========= =========
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in millions)
Six Months Ended June 30,
-----------------------------------
%
2000 1999 Change
--------- --------- --------
Operating Revenues
Passenger transportation $ 3,656 $ 3,499 4.5
US Airways Express
transportation revenues 422 382 10.5
Cargo and freight 76 73 4.1
Other 304 334 (9.0)
--------- ---------
Total Operating Revenues 4,458 4,288 4.0
Operating Expenses
Personnel costs 1,625 1,499 8.4
Aviation fuel 517 269 92.2
Commissions 173 230 (24.8)
Aircraft rent 215 187 15.0
Other rent and landing fees 200 196 2.0
Aircraft maintenance 208 182 14.3
Other selling expenses 201 177 13.6
Depreciation and amortization 167 144 16.0
US Airways Express capacity
purchases 364 305 19.3
Other 762 739 3.1
--------- ---------
Total Operating Expenses 4,432 3,928 12.8
--------- ---------
Operating Income 26 360 (92.8)
Other Income (Expense)
Interest income 59 105 (43.8)
Interest expense (123) (97) 26.8
Interest capitalized 8 8 --
Gain on sale of investment -- 274 (100.0)
Other, net (4) 17 (123.5)
--------- ---------
Other Income (Expense), Net (60) 307 (119.5)
--------- ---------
Income (Loss) Before Taxes
and Cumulative Effect of
Accounting Change (34) 667 (105.1)
Provision (Credit) for
Income Taxes (3) 261 (101.1)
--------- ---------
Income (Loss) Before
Cumulative Effect of
Accounting Change (31) 406 (107.6)
Cumulative Effect of
Accounting Change, Net
of Applicable Income
Taxes of $63 Million (103) -- --
--------- ---------
Net Income (Loss) $ (134) $ 406 (133.0)
========= =========
US Airways, Inc. NEWS
RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
SELECTED AIRLINE OPERATING AND FINANCIAL STATISTICS (Note 1)
(unaudited)
Three Months Ended June 30,
-----------------------------
%
2000 1999 Change
------- ------- --------
Revenue passengers (thousands)* 15,554 14,755 5.4
Total revenue passenger miles
(millions) 12,155 10,910 11.4
Revenue passenger miles
(millions)* 12,138 10,886 11.5
Total available seat miles
(millions) 16,266 14,846 9.6
Available seat miles(millions)* 16,247 14,817 9.7
Passenger load factor* 74.7% 73.5% 1.2 pts.
Break-even load factor (Note 2) 72.1% 65.7% 6.4 pts.
Yield* (Note 3) 16.24c 17.20c (5.6)
Passenger revenue per available
seat mile* (Note 3) 12.14c 12.64c (4.0)
Revenue per available seat mile
(Note 2 and 3) 13.33c 13.70c (2.7)
Cost per available seat mile
(Note 2) 12.62c 12.37c 2.0
Average passenger journey (miles)* 780 738 5.7
Average stage length (miles)* 645 612 5.4
Revenue aircraft miles (millions)* 118 110 7.3
Cost of aviation fuel per gallon 85.29c 52.40c 62.8
Cost of aviation fuel per gallon
(excluding fuel taxes) 78.98c 46.22c 70.9
Gallons of aviation fuel consumed
(millions) 309 286 8.0
Schedule mileage completion factor* 97.1% 97.6% (0.5)pts.
Number of aircraft in operating
fleet at period-end 395 382 3.4
Full-time equivalent employees at
period-end 42,653 39,599 7.7
* Scheduled service only (excludes charter service).
c cents
Note 1. Includes US Airways' "mainline" operations and the operations of
its low-cost product, MetroJet.
Note 2. Financial statistics exclude the revenues and expenses generated
under capacity purchase arrangements US Airways has with certain US
Airways Express air carriers.
Note 3. Effective January 1, 2000, US Airways changed its accounting
policy related to Dividend Miles revenue recognition in connection
with guidance found in the Securities and Exchange Commission Staff
Accounting Bulletin 101, "Revenue Recognition in Financial
Statements." The 1999 amount has been adjusted to show what US
Airways would have reported if the new accounting policy had been
in effect in periods prior to 2000.
US Airways, Inc. NEWS RELEASE
(A Wholly-Owned Subsidiary of US Airways Group, Inc.)
SELECTED AIRLINE OPERATING AND FINANCIAL STATISTICS (Note 1)
(unaudited)
Six Months Ended June 30,
-----------------------------
%
2000 1999 Change
------- ------- --------
Revenue passengers (thousands)* 28,357 27,752 2.2
Total revenue passenger miles
(millions) 21,830 20,483 6.6
Revenue passenger miles
(millions)* 21,798 20,439 6.6
Total available seat miles
(millions) 31,324 28,980 8.1
Available seat miles(millions)* 31,284 28,924 8.2
Passenger load factor* 69.7% 70.7% (1.0)pts.
Break-even load factor (Note 2) 71.6% 65.4% 6.2 pts.
Yield* (Note 3) 16.77c 17.45c (3.9)
Passenger revenue per available
seat mile* (Note 3) 11.69c 12.33c (5.2)
Revenue per available seat mile
(Note 2 and 3) 12.88c 13.42c (4.0)
Cost per available seat mile
(Note 2) 12.99c 12.55c 3.5
Average passenger journey (miles)* 769 736 4.5
Average stage length (miles)* 630 613 2.8
Revenue aircraft miles (millions)* 229 215 6.5
Cost of aviation fuel per gallon 86.98c 47.92c 81.5
Cost of aviation fuel per gallon
(excluding fuel taxes) 80.58c 41.78c 92.9
Gallons of aviation fuel consumed
(millions) 594 561 5.9
Schedule mileage completion factor* 96.9% 96.8% 0.1 pts.
Number of aircraft in operating
fleet at period-end 395 382 3.4
Full-time equivalent employees at
period-end 42,653 39,599 7.7
* Scheduled service only (excludes charter service).
c cents
Note 1. Includes US Airways' "mainline" operations and the operations of
its low-cost product, MetroJet.
Note 2. Financial statistics exclude the revenues and expenses generated
under capacity purchase arrangements US Airways has with certain US
Airways Express air carriers.
Note 3. Effective January 1, 2000, US Airways changed its accounting
policy related to Dividend Miles revenue recognition in connection
with guidance found in the Securities and Exchange Commission Staff
Accounting Bulletin 101, "Revenue Recognition in Financial
Statements." The 1999 amount has been adjusted to show what US
Airways would have reported if the new accounting policy had been
in effect in periods prior to 2000.
US Airways Group, Inc.
NEWS RELEASE
SUPPLEMENTAL SCHEDULE
(unaudited)
(dollars in millions, except per share amounts)
Three Months Ended June 30,
-----------------------------------------------
As
Reported Pro Forma
1999 % 1999 %
2000 (Note 1) Change (Note1) Change
-------- --------- ------ --------- ------
US AIRWAYS GROUP, INC.
Operating Revenues
Passenger transportation $ 2,212 $ 2,063 7.2 $ 2,098 5.4
Cargo and freight 39 35 11.4 35 11.4
Other 182 188 (3.2) 145 25.5
------- ------- ----------
Total Operating Revenues $ 2,433 $ 2,286 6.4 $ 2,278 6.8
======= ======= ==========
Net Income (Loss) $ 80 $ 317 (74.8) $ 313 (74.4)
======= ======= ==========
Earnings (Loss) per Common Share
Basic $ 1.19 $ 4.34 (72.6) $ 4.28 (72.2)
Diluted $ 1.17 $ 4.26 (72.5) $ 4.20 (72.1)
US AIRWAYS, INC.
Operating Revenues
Passenger transportation $ 1,972 $ 1,838 7.3 $ 1,873 5.3
US Airways Express
transportation revenue 231 206 12.1 206 12.1
Cargo and freight 38 34 11.8 34 11.8
Other 158 170 (7.1) 127 24.4
------- ------- ----------
Total Operating Revenues $ 2,399 $ 2,248 6.7 $ 2,240 7.1
======= ======= ==========
Net Income (Loss) $ 78 $ 339 (77.0) $ 335 (76.7)
======= ======= ==========
Note 1. Effective January 1, 2000, US Airways changed its accounting policy
related to Dividend Miles revenue recognition in connection with
guidance found in the Securities and Exchange Commission Staff
Accounting Bulletin 101,"Revenue Recognition in Financial
Statements." The Pro Forma 1999 amounts above are provided to
show what US Airways would have reported if the new accounting
policy had been in effect in periods prior to 2000.
US Airways Group, Inc. NEWS RELEASE
SUPPLEMENTAL SCHEDULE
(unaudited)
(dollars in millions, except per share amounts)
Six Months Ended June 30,
-----------------------------------------------
As
Reported Pro Forma
1999 % 1999 %
2000 (Note 1) Change (Note1) Change
-------- --------- ------ --------- ------
US AIRWAYS GROUP, INC.
Operating Revenues
Passenger transportation $ 4,096 $ 3,919 4.5 $ 3,987 2.7
Cargo and freight 78 75 4.0 75 4.0
Other 357 364 (1.9) 279 28.0
------- ------- -------
Total Operating Revenues $ 4,531 $ 4,358 4.0 $ 4,341 4.4
======= ======= =======
Net Income (Loss) $ (138) $ 363 (138.0) $ 353 (139.1)
======= ======= =======
Earnings (Loss) per Common Share
Basic $ (2.07) $ 4.76 (143.5) $ 4.63 (144.7)
Diluted $ (2.07) $ 4.67 (144.3) $ 4.54 (145.6)
US AIRWAYS, INC.
Operating Revenues
Passenger transportation $ 3,656 $ 3,499 4.5 $ 3,566 2.5
US Airways Express
transportation revenue 422 382 10.5 382 10.5
Cargo and freight 76 73 4.1 73 4.1
Other 304 334 (9.0) 250 21.6
------- ------- -------
Total Operating Revenues $ 4,458 $ 4,288 4.0 $ 4,271 4.4
======= ======= =======
Net Income (Loss) $ (134) $ 406 (133.0) $ 396 (133.8)
======= ======= =======
Note 1. Effective January 1, 2000, US Airways changed its accounting policy
related to Dividend Miles revenue recognition in connection with
guidance found in the Securities and Exchange Commission Staff
Accounting Bulletin 101,"Revenue Recognition in Financial
Statements." The Pro Forma 1999 amounts above are provided to
show what US Airways would have reported if the new accounting
policy had been in effect in periods prior to 2000.
NEWS RELEASE
2345 Crystal Drive
Arlington, VA 22227
[LOGO OF US AIRWAYS] Contact:
(703) 872-5100
-------------------------------------------------------------------------------
US AIRWAYS STATEMENT
ARLINGTON, Va., July 27, 2000 -- US Airways issued the following
statement in response to the comments made on July 26 by Senators McCain
and Gorton on the proposed US Airways-United Airlines merger:
The professionals at the Department of Justice, with the advice of
the Department of Transportation, are in the process of analyzing and
evaluating the proposed US Airways-United Airlines merger. The state
Attorneys General are conducting their own reviews. US Airways is actively
participating in these processes and is confident that the merger will
bring overwhelming consumer benefits and great opportunities for the
communities we serve. Moreover, it will bring a vibrant new entrant into
the marketplace in the form of DC Air and provides an unprecedented
guarantee of job security for the more than 40,000 US Airways employees. We
fully believe that these governmental reviews will come to the positive
conclusion that this merger is in the public interest and will
significantly enhance domestic and international competition.
PARTICIPANT INFORMATION
In connection with the merger of US Airways with a wholly-owned subsidiary
of UAL Corporation, US Airways filed a preliminary proxy statement on
Schedule 14A with the United States Securities and Exchange Commission (the
"SEC") on July 6, 2000. STOCKHOLDERS OF US AIRWAYS ARE URGED TO READ THE
DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL
CONTAIN IMPORTANT INFORMATION. Information concerning participants in the
solicitation of proxies by US Airways from stockholders to approve the
merger, as well as information on how you can get the definitive proxy
statement for free, when it becomes available, and other relevant
documents, on the SEC web site is contained in the Schedule 14A filed by US
Airways with the SEC pursuant to Rule 14a-12 of the Securities Exchange Act
of 1934, as amended, on May 25, 2000.
